BP Onboard $10B Risha Gas Devt Onshore Jordan

BP confirmed Monday that it will join Jordan's state-owned National Petroleum Company (NPC) to exploit the onshore Risha concession in a deal that may involve an investment totaling nearly $10 billion.

An agreement to develop the Risha gas field was signed Sunday by Jordinian Minister of Energy and Natural Resources Khaldoun Quteishat, BP's Chief Negotiator Sam Bennett and NPC's Chairman of the Directors Board Fayez Suhaimat.

Subject to government and Parliamentary approval, BP is to farm-in to the Risha concession as a partner of NPC, the British oil major said in an official statement.

Currently producing about 21 million cubic feet of nautral gas per day, the Risha concession was awarded by the Government to NPC and spans an area of about 7,000 square kilometers, which includes the Risha gas field. The development of this field will consist of two phases, the first of which will extend over three to four years, according to Quteishat, with BP under commitment to spend a minimum of $237 million.

The second phase of development will commence following a commercially viable discovery of gas, with BP expected to spend between $8 to $10 billion to tap production volumes of some 330,000 and 1,000 million cubic feet of natural gas per day.

According to NPC's Suhaimat, the Jordinian government will have a 50% share in Risha's output stages, with the remainder shared by BP and NPC.